According to this analyst, Terra (LUNA) has the potential to rise more than 280%

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From his YouTube channel Coin Bureau where he shares his forecasts on the evolution of the cryptocurrency market, analyst Guy was very optimistic for the future of Terra (LUNA). In particular, he claimed that the altcoin could rise by 284% thanks to the performance of the stablecoin TerraUSD (UST).

Growth driven by demand for UST

In the scenario presented by the host of Coin Bureau, the rise of LUNA would be mainly due to the popularity and high demand for UST on the market. ” The only thing that really holds LUNA back is its huge market capitalization. But the availability and popularity of UST means that LUNA could manage to pump 2-3x, which would give it a price between $150 and $200. “, did he declare. The downward trend that has recently spread across the entire market does not seem to worry him. He also asserted that LUNA turns bullish when the rest of the market is bearish.

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What is even more important is that Luna tends to rise when the crypto market crashes, and this is likely due to increased demand for the UST stablecoin, which now exists on almost a dozen blockchains and trades on most major exchanges. I think LUNA’s price action is driven by UST demand “, he continued. The analyst then presented the reasons why the demand around the UST should explode in the coming months.

Factors that increase the demand for UST

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He notably highlighted the safe haven status of the stablecoin which has been reinforced since it managed to maintain its peg during the market downturn. The analyst also claimed that the decentralized nature of the stablecoin was one of the factors driving up its demand on the market. Added to this are regulatory concerns around centralized stablecoins in the United States. The Coin Bureau host claimed that all of these factors have led to nearly 10 billion UST being issued since September.

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This is not something that other decentralized stablecoins have managed to do. Terra’s DApps have actually been the main drivers of demand for UST, especially the Anchor protocol which has received accolades from almost every other crypto-smart contract project. Less than a year ago, there was only one decentralized application on Terra. Today, there are over 100. That’s called exponential growth! “, he concluded.

The TerraUSD stablecoin currently ranks 15and place in the cryptocurrency rankings with a market capitalization of around $11.3 billion. This total should quickly change as it is adopted as a safe haven as the Coin Bureau analyst predicts. Until we can benefit from the fallout from this adoption, LUNA is trading around $50 at the time of writing.

Source: The Daily Hodl

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